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Economic Affairs Financial Markets

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Consider the following:

1.Market borrowing

2.Treasury bills

3.Special securities issued to RBI

Which of these is/are components (s) of internal debt?

Only 1

1 and 2

Only 2

1, 2 and 3

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Explanation:

All the statements are correct.
Internal debt is that part of the total debt that is owed to lenders within the country. It is the money the government borrows from its own citizens. The government borrows by issuing the Government Bonds and T-Bills (Treasury Bills). It also includes the Market borrowings by the government.